SHAREHOLDERS DISPUTE SALE OF AMERICAN SAMOA HOTEL

admin's picture

By Fili Sagapolutele

PAGO PAGO, American Samoa, (Samoa News, Aug. 15) - Governor
Togiola Tulafono, representing the majority shareholder of the American Samoa
Development Corporation (ASDC), has called a special meeting of the corporation’s
shareholders on October 15 at the Rainmaker Hotel's Main Dining Room.

The government claims to own 80 percent of ASDC, through the
Development Bank of American Samoa (DBAS), whose only asset is the Rainmaker
Hotel.

An ad hoc committee, assembled in the eighties to represent
minority shareholders, adamantly maintains that the government does not own the
majority of ASDC shares and reactivated the committee recently upon reports of
the Rainmaker Hotel being sold.

After learning that the American Samoa government was close to
finalizing the sale of the Rainmaker Hotel to local company Rainbow Inc. without
the promised shareholders meeting with the governor, committeee officials moved
to stop the sale of the hotel.

The committeee contends that the Governor promised to call a
shareholders meeting last month to discuss the sale and amend certain provisions
of ASDC's articles of corporation. When that did not occur, the committeee
secured an attorney, Robert K. Maez, to protect their interests and to prepare
to take the case into court if the sale went through without their input.

Although the government has reached an agreement with Rainbow
Inc., Governor Togiola Tulafono told Samoa News recently that the government
found that the agreement could not be done under the authority given by the ASDC
Charter and By-laws.

The attorney Maez wrote to the Governor on July 28 about the
promised shareholders meeting to clarify the sale of the hotel.

Ad hoc committeee president, Senator Te'o J. Fuavai in a letter
to the Samoa News (published in the letter to editor section today) said Maez
also requested a copy of the proposed offer to purchase the hotel. According to
Te'o, the Governor (who is off-island) has not responded as of yesterday and the
committee is prepared to call another meeting soon to discuss the group's next
course of action.

Yesterday Samoa News received a notice by ASDC president Mrs.
Sese McMoore, wife of House Speaker Matagi R. McMoore, about the now scheduled
October 15 shareholders meeting, also confirmed by the Governor's Office.

Among the issues to be discussed is the "potential
sale" of the hotel, election of directors and receipt of ASDC's annual
reports for years 2001, 2002 and 2003 current through September 30, 2003.

Also be to considered at the meeting is the deletion of two
provisions of ASDC's Articles in order to allow the sale of stock to
corporations or partnerships and to allow a person, corporation or partnership
to own more than 1 percent of the corporation's authorized stock, and to amend
one provision to allow sale of stock outside the limits of American Samoa.

The purpose behind the proposed article amendments is to
increase the marketability of the hotel, to keep up with the change of times,
said government sources

August 20, 2003

Samoa News: www.samoanews.com 

 

Rate this article: 
No votes yet

Add new comment